fred flintstone said:
No, let's try this again.
It's not about who has the most listeners.
It's about who has the most desirable listeners - listeners advertisers want to reach.
CPM=Cost per thousand.
A station can charge more for a thousand white males 18 to 34 than for a thousand white males 55 to 65.
Advertisers pay more to reach people who are more likely to buy their product and who are more likely to be heavy users of their product.
They also pay more to reach harder to reach people. Older people listen to radio more. Therefore, they are easier to reach. Therefore, advertisers pay less to reach them. Scarcity increases value.
Since when is a business an "accomplice" for giving the customer what it wants?
The advertiser is the customer.
The advertiser pays the piper.
You all got a free ride for 35 years of Oldies (plus 15 years before that of AM Top 40).
Stop whinning.
You are absolutely correct, "Fred". That's what the radio game is all about.
I do, however, think the advertising business is being extremely short-sighted about
the lack of "value" it places today on people over 50. There are major studies out which show today's group of 50-somethings has far more disposable income, is way more active,
is more receptive to new things, than the previous generation was. I am almost there.
I make far more than my parents ever did, I do change brands and I am aware of cultural change. It's sad that (supposedly) college-trained media buyers don't see this, or don't want to. Then, add to this the lack of emphasis many radio companies place on actually training their sales staffs...that companies would rather change format than work to re-educate misconceptions formed in the minds of media buyers. (Oh my God! We might offend the agency!) I have worked with salespeople who can't grasp the concept that a station's signal coverage can affect it's Arbitron ratings! One would think this concept would be taught by sales managements.
Television gripes and complains about constantly smaller audiences year after year. Certainly, cable, satellite and the general compression of markets play into part of this.
But, it's also a fact that each year, the "pie" of 18-34 year olds and 18-49 year olds
shrinks. If you're targeting an audience that gets smaller every year, so, too will your audience shares.
Yet, I'm a realist. Until and unless some company makes a huge profit targeting the over 50 crowd and becomes the darling of Madison Avenue, we have to live with what we live with. I grew up in the 70's. I've got no problem with Classic Hits or Classic Rock or whatever radio chooses. Hopefully, the additional channels HD will provide will allow for some "traditional" oldies stations to exist. I still believe in the format. Stations are only abandoning them because they "don't make as much money as they used to". But, quite a few were/are still turning a profit that would have been considered good by pre-consolidation standards.
Frankly, I'm more concerned about what comes after Classic Hits/Rock goes away. The disposable Pop music of the 90's and beyond (of which you can only find a handful of songs that test with a mass appeal audience), combined with the polarized music of today could prove to be a challenge for radio programmers. Guess we'll see.